Donald Trump is expected to announce a “full and comprehensive” tariff deal with the UK on Thursday.
The US President earlier said on his Truth Social platform that he will be holding a press conference at 10am (3pm BST) “about a major trade deal” following talks with a “big and highly respected country”.
He later posted: “The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come.
“Because of our long time history and allegiance together, it is a great honor to have the United Kingdom as our FIRST announcement. Many other deals, which are in serious stages of negotiation, to follow!”
Starmer: ‘I will always act in our national interest’
Prime Minister Sir Keir Starmer, who had been due to spend the day focusing on events to mark the 80th anniversary of VE Day, is expected to say more on the deal later on Thursday.
Starmer said on Thursday morning: “Talks with the US have been ongoing and you’ll hear more from me about that later today.
“But make no mistake, I will always act in our national interest, for workers, businesses and families, to deliver security and renewal for our country.”
The government has been pursuing a deal with the US to reduce the impact of sweeping tariffs imposed by Trump last month, which placed a 10% levy on all UK exports and a 25% charge on steel, aluminium and cars.
Ministers are expected to update MPs on talks with the US with a statement in the Commons later on Thursday.
Number 10 had been expecting the announcement of a deal, but the timing of Trump’s post is understood to have come as a surprise, given the focus on VE Day commemorations.
Asked about Trump’s announcement, the prime minister’s official spokesman said: “We have been progressing this deal over the last few weeks and months, and officials have been in the US progressing these talks over the last few days as well.
“We’ve obviously been working at pace to do the deal, and to do a deal that is in British national interests.”
Downing Street: Lowering food standards ‘red line’ for US trade deal
The deal with the UK will be the first agreement since Trump announced the “liberation day” sweeping tariffs on countries around the world on April 2, as he accused them of “looting, pillaging, raping and plundering” the US.
Reports have previously suggested a deal could see the UK reduce some tariffs on American products, as well as changing the digital services tax that currently affects mainly US tech companies.
But the government has ruled out lowering food standards to allow more US agricultural products into the country, or watering down the Online Safety Act, which some in America regard as placing restrictions on freedom of speech.
Downing Street insisted earlier that lowering food standards remained a “red line” for any US trade deal.
Environment secretary Steve Reed told the Commons there are “red lines” on environmental or welfare standards after he was asked about the deal’s potential impact on British farmers.
Liberal Democrat environment spokesman Tim Farron asked him: “US animal welfare standards as a matter of fact are worse than ours, which means that import costs are less, and so to allow equal access is not free trade, it is unfair trade, and throwing our farmers under the bus just like the Conservatives did in their deal with Australia and New Zealand.
“So, will he support Liberal Democrat calls for this deal to only be signed if it supports farmers, and after a vote from this House?”
Mr Reed replied at the despatch box: “Of course, there have been no announcements yet so I won’t be able to pre-empt what those might be, but we have been crystal clear – we have red lines in this.
“We will not be allowing British farmers to be undercut on environmental or welfare standards in the way that the Conservatives did when they agreed a trade deal with Australia that undercut British farmers and caused immense damage to them.”
Bank of England welcomes expected deal
Bank of England governor Andrew Bailey has “welcomed” the expected announcement.
“It will help to reduce uncertainty,” he said.
“The UK is, though, a very open economy and is affected by the tariffs affecting other economies. I say that because I hope the UK agreement, if it is the case this afternoon, is the first of many.
“It is excellent that the UK is leading the way and I do congratulate all those involved.”
Thursday’s deal has been a long time in the making, with Chancellor Rachel Reeves saying the government has been working “flat out” to secure an agreement that would mitigate the impact of the tariffs.
In February, Starmer made a visit to the US during which Trump opened the door to a possible deal without tariffs.
Trump said: “He (Keir Starmer) was working hard, I’ll tell you that. He earned whatever the hell they pay him over there, but he tried.
“I think there’s a very good chance that in the case of these two great, friendly countries, I think we could very well end up with a real trade deal where the tariffs wouldn’t be necessary. We’ll see.”
It would be the second landmark deal the UK has made this week after it made an agreement with India, which will mean dramatic tariff reductions on scotch whisky and car exports to India.
Levies on aerospace, electricals and other food products will also fall under the agreement, while UK consumers are expected to benefit from tariffs being reduced on some Indian goods such as clothing imported to the country.
Announcing the deal, Starmer said: “We are now in a new era for trade and the economy.
“That means going further and faster to strengthen the UK’s economy, putting more money in working people’s pockets.”
Indian Prime Minister Narendra Modi described it as a “historic milestone” and an “ambitious and mutually beneficial” trade agreement that will “catalyse trade, investment, growth, job creation, and innovation in both our economies”.
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